Load Balancer Market Expected to Reach $8.90 Billion by 2027

According to a recent report published by Allied Market Research, titled, “Load Balancer Market by Component, Type, Deployment, and Enterprise Size:  Opportunity Analysis and Industry Forecast, 2020-2027,” the global market was valued at $3.39 billion in 2019, and is projected to reach $8.90 billion by 2027, growing at a CAGR of 12.9% from 2020 to 2027. 

Load balancing is a set of processes that handles multitude of server requests from modern multi-application and multi-device workflows. Its primary function is to balance the workloads and to distribute network traffic across multiple servers. In addition, load balancer ensures that no single server bears excessive requests or demands. In addition, it is incorporated in application delivery controllers (ADCs) or software-defined load balancing algorithms. Increase in need for business continuity and data load efficiently, especially in IT and telecom industry is significantly driving the growth of global load balancer market during the forecast period.

Factors such as rise in global IP traffic, rise in deployment of load balancer to deliver optimum performance with efficient load balancing for interconnected data center infrastructure, especially in developing regions, ongoing digital transformation initiatives by governments across the world are driving the demand of global load balancer market.

The global load balancer segment is anticipated to hold the majority of the load balancer market share in 2027 due to  rise in adoption of multi-cloud deployment and need for delivering mission-critical business continuity and global disaster recovery support in the event of site or regional-level outages.

The IT & telecom segment accounted for the major share among several industry verticals, owing to the fact that data center servers are primary end users of load balancers. Moreover, ongoing digital transformation across the globe and rise in cloud migration services among various industry verticals. Further, realization of CSPs to avoid service outages which hamper the brand image is also driving the demand for load balancer market in telecom industry.

As per region, the global load balancer market size was dominated by North America in 2019 and is expected to maintain this trend during the forecast period. Factors such as presence of leading companies developing load balancer in North America and majority of ICT spending in this region are the major drivers for the load balancer market growth in this region. In addition, the large presence of load balancer industry players in the U.S. offers customized load balancer solutions. These players focus on consistent innovations in the field of load balancer to sustain competitiveness in the market. In order to avoid the possibility of products becoming obsolete or uneconomical within a short period of time, these players consistently focus on innovations in existing products or developing updated products.

The outbreak of COVID-19 is anticipated to have a positive impact on the growth load balancer market. This is attributed to increase in adoption of load balancers in data centers, as the internet traffic has increased at a considerable rate. With the emergence COVID-19, the use of load balancers will enable enterprises to address latency issues and facilitate web performance optimization while remote working. Furthermore, cloud service providers (CSPs) are focusing on local and global load balancing solutions, along with WAN optimization, to implement disaster recovery scenarios, and to reduce user latency.

Key Findings Of The Study

• By type, the global load balancer segment is expected to witness highest CAGR during the forecast period.

• On the basis of load balancer deployment, the cloud segment accounted for the highest load balancer market share in 2019.

• Depending on enterprise size, the large enterprises segment is accounted for the highest global market size in 2019.

• As per industry vertical, the IT & telecom segment is anticipated to exhibit highest growth during the forecast period.

• Region wise, North America accounted for the highest revenue in 2019; however, Asia-Pacific is anticipated to exhibit highest growth during the load balancer market forecast period.

The global load balancer market analysis includes some of the key market players such as A1o Networks, Inc., Amazon Web Services, Inc., Citrix Systems, Inc., F5 Networks, Inc., Google LLC, IBM Corporation, Imperva, Kemp Technologies, Inc., Microsoft Corporation, and Radware Ltd.